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i have also same problem on iphone 3gs 16gb error 1618
the phone was working very good on 4.2.1
i tried to downgrade to 4.1 without shsh using ireb
after downgrade always stuck on DFU then i upgrade again to 4.2.1
i got error 1618 then i try 4.3.1 same error 1618 4.3.2 same error 1618
i tried every thing no sucsess
i think the nand chip corrupted
So the only way is hardware
change nand ic (i am not sure correct me if iam wrong)

if you have install tiny umbrella in your pc v4.30 and higher. just open tiny umbrella and go to advance and untick set to cydia on exit. then close it. then open latest itunes and restore your phone, it works for me error 1618

tried all solution set host to cydia on exit and gs.apple on host
no sucesses (every day i restore almost 10 iphones on my pc without any problem so please don't say change pc. change usb port, host edit
thanks for replay

i have also same problem on iphone 3gs 16gb error 1618
the phone was working very good on 4.2.1
i tried to downgrade to 4.1 without shsh using ireb
after downgrade always stuck on DFU then i upgrade again to 4.2.1
i got error 1618 then i try 4.3.1 same error 1618 4.3.2 same error 1618
i tried every thing no sucsess
i think the nand chip corrupted
So the only way is hardware
change nand ic (i am not sure correct me if iam wrong)

I wont believe its NAND ic problem.
Some users reported its battery problem. & i get success with this